Danilo Gargiulo, an analyst from Bernstein, maintained the Buy rating on Chipotle (CMG – Research Report). The associated price target remains the same with $60.00.
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Danilo Gargiulo has given his Buy rating due to a combination of factors that highlight Chipotle’s relative strength in a challenging market. Despite expectations of a challenging first quarter in 2025 with a slight miss on same-store sales consensus, Chipotle’s performance is still anticipated to be stronger than its peers. The company’s pricing strategy remains competitive, as it is below inflation rates in both the fast-casual sector and the broader industry, enhancing its value proposition.
Moreover, Chipotle’s focus on high-income consumers is expected to provide a buffer against macroeconomic uncertainties impacting lower-income demographics. Even with the potential impact of tariffs, the company is projected to maintain strong margins through labor productivity and operational efficiencies. The stock’s current valuation already reflects some deceleration, but Chipotle is expected to outperform its peers, with potential for growth in same-store sales and margins, leading to a closer alignment with its historical valuation metrics.
In another report released yesterday, KeyBanc also maintained a Buy rating on the stock with a $60.00 price target.